China's warehouse storage sector continues recovery in June

BEIJING -- China's warehouse storage sector continued to rebound in June, according to a survey jointly released by the China Federation of Logistics and Purchasing and CMST Development Co Ltd.

The index tracking the sector's development rose 3.7 percentage points from May to 53.9 percent in June, continuing to stay in the expansion range, the survey showed.

A reading above 50 percent indicates expansion, while below 50 percent reflects contraction.

Wang Yong, vice president of CMST Development, attributed the sector's rebound to the ease of the COVID-19 disruptions, the stability of China's economy, and the significant recovery on both the demand and supply fronts.

The sub-readings measuring new order and average inventory turnover rose more than 6 percentage points and 8 percentage points from one month earlier respectively, Wang said, noting that it indicates stronger recovery momentum of the industry and the effectiveness of measures taken to smoothen logistics.

The survey also predicted a steady growth of the sector in the future, given that improvements in epidemic prevention and control, and policies to stabilize economic growth will further boost demand and supply.